Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,950 |
| 1 Bedroom | $3,050 |
| 2 Bedrooms | $3,640 |
| 3 Bedrooms | $4,340 |
| 4 Bedrooms | $4,780 |
| 5 Bedrooms | $5,545 |
| 6 Bedrooms | $6,210 |
| 7 Bedrooms | $6,707 |
| 8 Bedrooms | $7,042 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,340 | $1,231,814 | 0.35% | F |
| 4BR | $4,780 | $1,588,749 | 0.3% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 02462 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. As of the fiscal year 2024, the FMR stands at $2,560. However, recent data indicates that the average market rent in 02462 is now $2,650, representing a gap of $90, or approximately 3.5%.
This gap suggests that landlords accepting Section 8 vouchers in ZIP 02462 are renting below the open-market rate. Given the context of 02462, which has a 27.4% rental rate, a median home value of $1,321,752, and a median income of $216,339, the decision to accept voucher tenants comes with trade-offs. Voucher tenants can provide a stable and predictable cash flow, which is beneficial for yield-focused investments. However, they also require compliance with HUD regulations, which can increase administrative overhead.
The cost of housing voucher tenants below open-market rates means that landlords might need to adjust their expectations regarding rental income. Despite the slightly lower rent, the stability and government backing of Section 8 vouchers can be attractive to landlords in a market with limited rental availability and fluctuating rents.
In summary, while the FMR is slightly below the current market rent, the benefits of steady income and a reliable tenant base should be weighed against the costs of reduced rent and additional administrative requirements. This analysis anchors the discussion in the broader economic context of 02462, where the rental market is notably higher than the national average, yet still subject to the dynamics of supply and demand.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.